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Consider two job offers in the same city. One salary is $80 000, in a company where the average salary is $100 000. The other salary is $70 000 in a company where the average salary is $50 000? How would each job be rated if people were rating each of these job offers independently (not comparing them to each other) ?
Control Limits
Statistical boundaries set in process control that indicate the permissible range of variation for a process to remain in control.
Assignable Causes
Specific, identifiable factors that cause variation in a process or system, as opposed to random variation.
Type II Errors
A statistical error that occurs when a test fails to reject a false null hypothesis.
Type I Errors
Incorrectly denying a correct null hypothesis, familiarly termed as a "false positive."
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